Tourism may be the cornerstone of many local economies, but, all over the world, it has been unfairly criticised in recent months.
Housing shortages, overcrowding, pollution, anti-social behaviour — it feels like any and all problems are being blamed on tourism, especially short-term rentals (STRs). However, it’s important to remind the public that while tourism, like any industry, is far from perfect, it can still be leveraged as a force for good, especially with the technology available to us today.
Here are four ways AI and technology will reshape perceptions and help STRs become even more of a force for good to communities and local economies.
1. Guiding guests to do good
One of the most impactful ways AI can change the game is by guiding guests toward spending their money in ways that benefit the local community. Digital guidebooks are an instant way to direct guests to local businesses, with itineraries based on frequently updated data. Beyond recommending popular restaurants and attractions, they can introduce them to lesser-known, locally-owned businesses and suggest off-peak times to visit popular spots. This helps reduce overcrowding and channels tourism revenue toward small, community-based enterprises over multinational chains, ensuring that the economic benefits of tourism are spread more evenly. As a bonus, guests feel good and get a more authentic experience.
2. Reducing anti-social behaviour
On a more operational level, technology and AI are already making big strides towards addressing some of the biggest complaints people have about the STR sector. Airbnb’s anti-party screening is a great example of how anti-social behaviour can be prevented before it ever becomes a problem. Noise and occupancy monitors add another layer of security, allowing neighbouring communities to rest easy knowing that parties and fire risks from smoking will be dealt with quickly. Over time, fewer complaints to property managers and local authorities will gradually shift perceptions – making STR guests more considerate neighbours than even some locals!
3. Enhancing policy decisions with data
AI is already transforming industries as diverse as finance and education. Local governments and tourism boards must act now to keep up. By analyzing huge amounts of data, local authorities can gain deeper insights into the true impact of tourism and short-term rentals on their communities — and respond more effectively.
AI can draw on and analyze a range of existing data streams, such as tourist spending patterns and footfall, while also tapping into new and emerging data sources that will arise as technology and AI become increasingly intertwined with the tourism and STR industries. For example, cities could develop dynamic pricing models for tourist taxes, with rates based on the season, demand, or the specific impact on local infrastructure, and demonstrate the real power of that income.
AI could even form a key part of the legislative process, with modeling enabling policymakers to balance tourism growth with community wellbeing. From deciding where to allocate funds for infrastructure improvements to determining when and where to encourage or limit the number of STR properties, AI could help governments develop long-term strategies to benefit both residents and tourists.
4. Data-driven diplomacy
It’s not enough for the industry to gather data showing that tourism and STRs can have a positive impact — the key is to present and communicate this data effectively. Industry leaders and the platforms themselves need to collaborate to create compelling, easy-to-understand reports that clearly outline the benefits of STRs, addressing common concerns like housing shortages and community disruption.
For example, we could track economic impact by gathering data on how many tourists have been directed to local businesses through personalised itineraries and how much money they have spent, countering the notion that STRs only benefit property owners.
Similarly, job creation data must illustrate how STRs support employment beyond just property management, contributing to jobs in cleaning, maintenance, and broader tourism. Environmental impact data could highlight how STRs are adopting sustainable policies, such as tracking energy consumption, water usage, and waste management, putting their commitment to green tourism into practice.
While AI and technology can automate much, engaging with stakeholders requires direct action from the tourism and STR sectors. These tools give us the power to reshape the industry’s reputation, but it is our responsibility to wield them effectively. The future of tourism and short-term rentals depends on how well we balance technological innovation with genuine human engagement. Only then can we transform the reputation of the STR sector into one that supports, rather than disrupts, the communities in which it operates.
